pDEX is a different kind of exchange. It’s non-custodial (which means your money is actually yours), it’s decentralized (built entirely on-chain), and because it’s powered by Incognito — it’s completely anonymous , of course.
It also facilitates instant matches by means of an automated market-making mechanism (more on this in a bit).
pDEX is the privacy-focused, inter-blockchain and instant-matching rendition of Nick Johnson and Vitalik Buterin’s conversations on Reddit circa 2016, and Hayden Adam’s implementation of Uniswap in 2018.
Let’s get to it.
How to trade with no order book
On exchanges like Binance and Coinbase, liquidity is provided by market makers who specify prices at which they are willing to buy or sell. On pDEX, trading occurs within a pool. Liquidity providers contribute even liquidity to both sides of a trading pair, and the pDEX mechanism automatically adjusts the exchange rate of every trade to keep the pool values at a constant. Want to dive a little deeper into the mechanics? Refer to the technical overview.
Tap “Trade” from the home screen.
Choose your assets
In the top section, select PRV, and enter the amount you want to trade (remember to leave enough for the transaction fee). In the bottom, select the coin you want to receive.
You can select any trading pair that you prefer. Don’t see a pair you like? List your own. To learn more about what it looks like to add your own pair and be a liquidity provider, scroll to the end of this article.
For demonstration, we’ll do USDT.
Check the rate, then click “Preview your order”
When you enter the amount of PRV you want to trade, the amount of USDT you will receive is automatically calculated based on liquidity. Double check that the price is accurate, and then click “Preview your order”.
Check amounts and the fee, then confirm
One more time, ensure the rate is accurate and that slippage is minimal. Verify the fee. Then, click “Confirm”
Wait for the transaction to process
Wait for the transaction to process, then go about business as usual. In a few minutes, your new coins will show up in your account!
Success! You just made your first 100% confidential trade.
Now, what if there isn’t quite enough liquidity for your preferred trading pair? Or maybe that preferred trading pair isn’t listed?
Take things into your own hands.
How to become a liquidity provider
To contribute to an existing pool , you’ll have to provide even liquidity to both sides of the pair to ensure the ratio is maintained.
Check the Liquidity rewards program out for more detailed instructions.
You can also make a new trading pair available by starting a pool .
As a liquidity provider, you can add any pair you like — including native Incognito tokens. If you are the first to contribute that trading pair, you’ll set the exchange rate – the amounts you deposit will determine the initial price.
Here’s how to list your ERC20 and BEP2 tokens on the permissionless pDEX.
That’s pretty much it! Ready to start trading?